Engineering & Mining Journal

AUG 2017

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NEWS-LEADING DEVELOPMENTS
AUGUST 2017 • E&MJ 5 www.e-mj.com
Land Exchange Act of 2017 are the same
as those found in the administrative land
exchange: PolyMet receives approximate-
ly 6,650 acres of surface land above and
around its NorthMet ore body near an area
heavily used for mining and mine infra-
structure; in exchange, the Superior Na-
tional Forest receives four parcels of land
totaling 6,690 acres currently owned or
controlled by PolyMet that will become
part of the Superior National Forest. The
difference is that the $425,000 equaliza-
tion payment owed PolyMet by the USFS
as a result of the administrative exchange
would be waived by the company in the
legislative exchange.
The company will continue its involve-
ment in the administrative steps to com-
plete the land exchange transaction while
the bill is under consideration.
Neither the administrative land ex-
change, nor a legislative exchange would
permit or approve construction of the
NorthMet mine. Mine development and
operations remain subject to regulation
and permits issued by the state of Min-
nesota and the U.S. Army Corps of En-
gineers, among others. Those state and
federal agencies are currently reviewing
and processing permit applications.
Rio Tinto Signs MOU With
Serbia for Jadar Project
Rio Tinto has signed a Memorandum of Un-
derstanding (MOU) with the government of
Serbia in respect to the implementation of
the Jadar project. The MOU will enable the
formation of joint working groups between
the government and the company to prog-
ress the project through the study and per-
mitting phases, as per the law.
The Jadar project is related to a
world-class lithium-borate deposit. If de-
veloped, the production could supply a
significant proportion of global demand
for lithium and borates. Lithium and bo-
rates are used to produce vital products
like batteries for electrical vehicles, glass
and ceramics, fertilizers, and many other
products. The project is currently in the
middle study stages with operation ex-
pected to commence in 2023, assuming
that feasibility studies confirm viability
and all necessary approvals are obtained.
"Rio Tinto sees Serbia as an attractive
investment destination, and the Jadar
project is an important part of Rio Tinto's
growth portfolio," said Rio Tinto Energy
& Minerals Chief Executive Bold Baatar,
who visited the project site in Serbia. "A
project of this magnitude requires time
and expertise to design and bring into
operation. We can only do this with the
support of the Serbian government and
local community."
Prime Minister of Serbia Ana Brnabić,
who met with the Rio Tinto representa-
tives before attending the signing of the
MOU, said, "In order for our domestic
economy to develop evenly, it is neces-
sary to initiate economic development
at the local level, and the Jadar project
will significantly contribute to the devel-
opment of Loznica and the entire region.
The project engages domestic and global
experts who, apart from socioeconomic
parameters, pay special attention to envi-
ronmental protection, without which fur-
ther progress is unthinkable."
So far, Rio Tinto has invested $US90
million in the Jadar project and produc-
tion is expected to start in 2023.
Rio Tinto Salt, Uranium and Borates
Division Managing Director Simon Trott,
who signed the MOU on behalf of Rio
Tinto, said, "We are pleased to have pro-
gressed the signing of the MOU today in
Belgrade. It lays the foundation to pro-
gress the project through future stages
and brings Serbia and Rio Tinto closer to
becoming a leading source of global lithi-
um and borate production."
"Rio Tinto has, so far, invested $US90
million in the Jadar project and I believe
that the signing of the MOU will speed
up the activities related to the process of
opening a mine and the beginning of the
exploitation of lithium, which will have
capital effect on the development of Ser-
bia," said Minister of Mining and Energy
Aleksandar Antić, who signed the MOU on
behalf of the government of Serbia. "Prog-
ress of the Jadar project in a timely man-
ner, and its implementation, will make
Serbia the key producer of the two very
important elements — lithium and boron
— both of which are important for modern
development. In that way, we will give a
push to the economic growth of Serbia."
South Africa's contentious mining law
update, which increased mandatory
black ownership, management participa-
tion and suppliers has been suspended,
the country's Chamber of Mines said on
Friday, July 14.
The new Mining Charter was intro-
duced last month to the shock of the in-
dustry, which had not been consulted in
its creation. Among the provisions were
an increase of black ownership from 26%
to 30%, and at least 70% of all suppliers
were to be from black-owned firms.
In response, the chamber has applied
for a court interdict against the Depart-
ment of Mineral Resources (DMR) to have
the charter set aside. Chamber CEO Roger
Baxter said on Friday the DMR had agreed
to suspend the charter pending a court
hearing originally scheduled for July 18.
In return for suspending the new char-
ter, the DMR asked the chamber to sus-
pend the original urgent court application
and, instead, schedule a hearing at a later
date. In essence, the DMR likely fears it
will lose in court and its lawyers advised
asking for more time to prepare a case.
Should the DMR attempt to enforce
the new rules, the chamber will reinstate
its urgent application.
"This is a satisfactory arrangement
for the chamber and the industry, whose
primary objective through the interdict
application remains to ensure that the
DMR's charter does not come into effect,
pending a court application to have it re-
viewed and set aside," Baxter said.
The charter has already rocked an in-
dustry struggling with mounting costs. In
July, Sibanye Gold, South Africa's biggest
gold miner, revealed that senior executives
were in Los Angeles in the final stages of a
road show with U.S. bond fund managers
when the new charter was announced.
Sibanye is in the process of the $2.2
billion acquisition of Stillwater Mining
in the U.S. Due to the unexpected an-
nouncement of the charter, the deal was
thrown into jeopardy.
"We had to hold back the financing,
find out what the charter meant and re-
brief all our potential investors," CEO
Neal Froneman said, quoted in Business
Day. "A number of institutional investors
pulled out of the bond process, saying the
risks in SA were just too high and it's be-
coming uninvestable."
Sibanye managed to finance the deal,
but has to pay an extra $5 million premi-
um on its borrowings, Froneman said.
Zwane Suspends South African Mining Charter
By Gavin du Venage, South African Editor